Why does the naira have two prices? The official rate and the street rate, simply
This week a dollar cost about ₦1,346 in the official market and up to ₦1,395 from street dealers. Here is why there are two rates, and why energy prices care about both.
In 30 seconds
- The official rate comes from the Nigerian Foreign Exchange Market (NFEM), where banks and licensed dealers trade dollars.
- On Monday, 2 November, it closed at about ₦1,346 to ₦1,348 per dollar, depending on the outlet reporting it.
- Bureau de change dealers were selling dollars for about ₦1,378 to ₦1,395 on Tuesday.
- Fuel, cooking gas, solar panels and power equipment are all priced in dollars, so the naira's value feeds into what you pay.
Ask three people what a dollar costs and you may get three answers. The news says one figure, the man at the BDC says another, and your bank app may say a third. Here is why.
The official rate
Banks and authorised dealers trade dollars in the Nigerian Foreign Exchange Market, or NFEM. The rate at the end of each day is the official rate.
On Monday, 2 November, it closed at ₦1,346.01 per dollar, Nairametrics reported. Legit.ng put the same day's close at ₦1,347.94. Figures from different outlets often differ by a naira or two, so treat the official rate as "about ₦1,346 to ₦1,348" this week.
Dollars worth $227.18 million changed hands in the official market that day, the first day below $300 million since 28 September, according to Nairametrics.
The street rate
Not everyone can get dollars from a bank. People who need cash dollars, or who cannot meet a bank's paperwork, go to bureau de change dealers. Their price is the parallel market rate, sometimes called the black market rate.
On Tuesday, dealers were quoting about ₦1,378 per dollar, Arbiterz reported, while Techeconomy put their selling price at about ₦1,395. That is roughly ₦30 to ₦50 more per dollar than the official rate.
Why there is a gap
The street rate is higher because street dealers sell to people who cannot get dollars from a bank, and they charge for that. When banks can meet more of the demand for dollars, fewer people need the street, and the gap tends to narrow.
Why energy prices care
Much of Nigeria's energy is priced in dollars. Crude oil is sold in dollars, including the crude that local refineries buy. Imported petrol, cooking gas, solar panels, inverters and transformers are all paid for in dollars.
So when the naira weakens, these things cost more in naira, even if their dollar price has not moved.
What it means for you
When you read that petrol, gas or solar is getting dearer, check two things: what happened to the dollar price, and what happened to the naira. Often it is both.
A small move in the naira does not change your pump price overnight. A steady slide over weeks usually does. You can follow the official rate on our markets page.
Words to know
- NFEM
- The Nigerian Foreign Exchange Market, the official market where banks and authorised dealers buy and sell foreign currency.
- Parallel market
- Street and bureau de change dealers who buy and sell dollars outside the official market. Also called the black market.
- BDC
- Bureau de change, a licensed small currency dealer.
- Turnover
- The total value of dollars traded in a day.
Sources
- Nairametrics: NFEM turnover falls below $300 million for first time since September 28 (3 Nov 2026)
- Legit.ng: Traders quote new exchange rates as naira falls against dollar (3 Nov 2026)
- Arbiterz: Naira weakens to ₦1,378/$ in parallel market (3 Nov 2026)
- Techeconomy: Dollar to naira today, 3 November 2026
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